Today, leading cryptocurrency exchange Binance announced a new partnership with Paxos, a regulated financial institution which digitizes and mobilizes assets. The two firms will launch a USD-pegged stablecoin called Binance USD (BUSD). According to the announcement, BUSD has already received the approval of the New York State Department of Financial Services (NYDFS) and will be available for trading later this month.
The announcement comes days before the expected launch of Binance US, a subsidiary focused on serving US-based traders.
Binance to Launch USD-Backed Stablecoin
In a press release, Paxos claims to be uniquely positioned to mobilize and custody assets digitally as the first regulated trust company with blockchain expertise, and it will serve as the USD issuer and custodian of Binance USD. Binance USD (BUSD) will be available for direct purchase on the Paxos platform later this month and will be pegged 1:1 to the U.S. dollar. Once it’s integrated on Binance, users will be able to trade it against BNB, BTC, and XRP.
Changpeng Zhao, the CEO of Binance, noted:
Paxos is leading the digital trusts space and we are excited to work with them in developing our native stablecoin.
Also weighing in was Paxos’ co-founder and CEO, Rich Teo:
NYDFS’s approval of BUSD is a vital step towards long term stability in global crypto markets. We are proud that our stablecoin as a service offering enables trusted companies like Binance to introduce products customized for their users.
Binance Is Keeping Busy
The news follows an earlier announcement that Binance will launch a subsidiary called Binance US. It’s intended to serve US-based traders.
The second half of 2019 appears to be even more impactful for the exchange. In July, Binance opened the doors for margin trading, allowing users to place leveraged orders.
The world’s leading cryptocurrency exchange also revealed its intention to create Venus, a “regional version” of Facebook’s Libra, as a means of opposing the established financial hegemony.
Binance launched a platform allowing traders to lend their BNB, ETC, and USDT for a predetermined time period, receiving a certain annualized interest rate. The platform is dubbed Binance Lending and allows users to potentially earn passive income.
And if all of that isn’t enough, earlier this month, the company acquired JEX, a crypto asset derivatives trading platform. Its new venture, Binance JEX, will offer cryptocurrency derivatives including options and futures contracts.